Natural gas and oil prices have dropped and KCS's guidance of earnings has dropped as well. They simply won't be making the money they have in the past. Last summer the spot market demand of natural gas and gasoline drove up the stock of many gas companies. The trading of natural gas is likely to be more carefully scrutinized since the California power debacle of last summer. The winter has been the mildest in NA ever. Prices are down. Denmand is down. It still costs about the same amount to get the stuff out of the ground.

Look at their next fiscal year PE. It's about 4.5 which is not out of line for a natural resource (oil, coal, timber) driven company. The TTM PE (.78) reflects fat profits made last year.

On a daily note, the price jumped big time today in anticipation of the increased natural gas volume expected due to the upcoming blast of cold air into the eastern US.